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Technology Stocks : Advanced Micro Devices - Moderated (AMD) -- Ignore unavailable to you. Want to Upgrade?

To: porn_start878 who wrote (10814)	9/30/2000 1:53:06 AM
From: Petz	Read Replies (1) \| Respond to of 275872

max, <I look at pricewatch and see 550 MHz selling in the high 80's.> Yes, I see AMD must be soaking the OEM's and little shops who insist on using the K6-2. Its part of the effort to make them use Durons. <The place where I think you're wrong is the cost of sales. You seems to forget that the k7 are high-yieldind parts and there are very few parts shipped with expensive slot package this Q.> Yes, I forgot to specifically take that into account. I took additional costs at 35% of the increase in revenues plus $10M (or was it 20) for higher depreciation as per guidance. I assumed a linear increase in depreciation, i.e., it will go up an equal amount in Q4. I forgot that COS for the existing $400-500M of Athlons will be lower because of fewer slotted parts, but maybe thats compensated by using a pretty low number (35%) for incremental costs. BTW, thanks for responding to my estimates. I also appreciate it when people show their justifications. Petz